The Value of Information Assignment Example | Topics and Well Written Essays - 500 words

The Value of Information - Assignment Example Managers are mostly faced by a were situation where they have to make decisions instantly; hence, it is mostly the case that decision making under uncertainty is mostly the case for decision makers. Imperfect information can largely be ignored in repetitive trials with small effects resulting from errors because the impacts are small, and the result from errors showing that the information could be the waist not for the errors. The other reason for ignoring imperfect information is the inability of the information to have much impact on the probabilities or chances for making the correct decision; hence, they can largely be ignored. The need for first-time success increases the demand for information as a measure of ensuring uncertainty is reduced in making the decision increasing the chances of making the correct decision. Availability of information for decision-making increases the possibility of first-time success by ensuring the decision maker knows the odds between making the correct and wrong decision. To augment the chances of first-time success, the demand for information increases to ensure the ability to make correct decision increases. The demand for information incr eases in first-time success owing to lack of previous data and the high uncertainty associated with first-time success owing to no proven record of accomplishment for decision making. In one-shot large potential loss situations, the information that is commonly available is the payoffs that the decision maker expects to get from a given decision from the highest to the lowest pay off accompanying any.